Border Delivery Group Update - 19 March

This bulletin provides an overview of the latest EU Exit information relating to UK borders from across UK Government.

Leaving the EU with a deal remains the Government’s top priority. This has not changed. However, the UK Government must plan for every eventuality including no deal. Without a deal, businesses may need to take action before 29 March 2019.

As intermediaries and trade bodies who work with UK businesses, the role that you can play in helping the UK Government reach out to businesses and individuals is crucial.

As well as using this bulletin for your own contingency planning, you can help us reach your clients, customers and members prepare by forwarding this email on or sharing the content via existing channels.

Temporary tariff regime for no deal EU Exit

This regime is temporary, and the government would closely monitor the effects of these tariffs on the UK economy. It would apply for up to 12 months while a full consultation and review on a permanent approach to tariffs is undertaken.

British businesses would not pay customs duties on the majority of goods when importing into the UK if we leave the European Union without an agreement.

Under the temporary tariff, 87% of total imports to the UK by value would be eligible for tariff free access. Tariffs would still apply to 13% of goods imported into the UK.

MAKE UK: No Deal EU Exit webinar link

On 13 March MAKE UK and UK Government held a no deal EU Exit workshop: ‘Everything you need to know on customs, excise and VAT post Brexit’.

The purpose of the workshop was for UK Government officials to provide advice and guidance on customs procedures and facilitations for traffic between the UK and the rest of Europe, should the UK leave the EU without a deal.

Import VAT on parcels

HM Revenue and Customs (HMRC) have published guidance to help you find out about import value added tax (VAT) on parcels, if you are outside of the UK and sell goods to UK buyers, if the UK leaves the EU without a deal.

When the UK leaves the EU, if you are based outside the UK and sell goods to UK buyers that are worth £135 or less, you must pay import VAT.

Accounting for import VAT if the UK leaves the EU without a deal

If the UK leaves the EU with no deal businesses registered for VAT in the UK will be able to account for import VAT on their VAT return rather than pay when, or soon after, the goods arrive at the UK border.

This will apply to goods from both EU and non-EU countries and will help businesses currently moving goods into the UK from other EU member states to reduce any cash flow impacts after the UK leave the EU.

Businesses or individuals who are not VAT registered in the UK will not be able to account for import VAT in this way. They’ll need to pay import VAT up front at the time of import.

Exporting controlled goods after EU Exit

The Department for Business, Energy and Industrial Strategy (BEIS) have published additional guidance explaining what will change for exporters of controlled goods if the UK leaves the EU with no deal.

Controlled goods are regulated through a system of export licensing and include:

military items • dual-use items (items with both civil and military uses)

firearms

items that can be used for torture or capital punishment

Go to GOV.UK for further guidance.

Expansion of ePassport gates

As part of the Spring Statement last Wednesday, the Chancellor announced the expansion of ePassport gates to nationals from Australia, Canada, Japan, New Zealand, Singapore, South Korea and the United States of America from June 2019. Citizens of these countries will also be exempt from the landing card requirement from June.

NEC BIRMINGHAM : 4-6 NOV
BIFA is working closely with Multimodal to bring together a Freight Forwarders Village, a Pod style village of stands designed to provide a marketplace for BIFA members and associate members to showcase the products and services they offer in a simple and cost effective way.